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Education ties and investments abroad. Empirical evidence from the US and UK

Marina Murat ()

Center for Economic Research (RECent) from University of Modena and Reggio E., Dept. of Economics "Marco Biagi"

Abstract: This paper analyses the impact of university student ties on the FDI of the US and UK into 167 countries during the period 1999-2010. University ties are measured by international students flows and alumni associations worldwide. Studies on transnational social networks suggest that effects should be higher on the FDI directed to the developing economies. The paper’s main findings are that international student flows and alumni associations abroad exert a positive influence on the FDI from the US and UK into the students’ home countries. More specifically, their influence is strong and significant in the group of developing countries. Results, similar for the US and UK, are robust to different regressors and econometric specifications.

Keywords: International students, alumni, bilateral FDI, education networks (search for similar items in EconPapers)
JEL-codes: F14 F20 I23 J24 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mig
Date: 2013-07
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